We are 50, and are constantly thinking of retiring, but reality tells us to persevere. Our children are still schooling and we have elderly parents to take care of. Thankfully the gahmen is looking to raise the retirement age to 65. This will give us 15 more years to build up our retirement funds.
Our monthly expense:
1. Allowance to parents & children : $1100
2. Income taxes : $2900
3. Utilities : $250
4. Domestic helper : $550
5. Groceries : $1400
6. Condo fees (x 2) : $650
7. Condo loan (x1) : $3000
8. Car loan (x 1) :$2000
9. Car road tax (x 2) : $200
10. Car insurance (x 2): $200
11. Petrol : $350
12. Children's school fees(x 2) : $600
13. Personal insurance (x2) : $500
14. Family meals at restaurants (x 4) : $800
15. Annual vacation (prorated) : $450
Total monthly expenses : $ 14,000
Monthly income:
Him : $14,500
Her : $8,500
Passive : $9,000 (from rental, dividend & interests)
Total monthly income :$$32,000
Monthly savings (incl
CPF): $18,000
Ave. Annual bonus (incl 13th month) : ($14,500 + $8500) x 4 = $92,000
Total yearly savings : $18,000 x 12 + $92,000 = $308,000
If we can continue at this pace till 65, we will be able to accumulate another 15 x $308,000 = $4.6m! Then we can continue to maintain our current lifestyle in retirement. Maybe we will not have 2 cars, and we will save on income taxes. But we will still want a maid to help with household chores.